A simple algebraic approximation to the Erlang loss system

  • Authors:
  • Daniel Adelman

  • Affiliations:
  • University of Chicago, Graduate School of Business, United States

  • Venue:
  • Operations Research Letters
  • Year:
  • 2008

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Abstract

We use Palm calculus to derive a simple, intuitive system of two linear-quadratic equations and two unknowns, whose algebraic solution yields Harel's (1988) upper bound to the Erlang loss probability. We then derive a sequence of progressively stronger systems of equations, which eventually become exact. We provide two example applications.